TORONTO, Sept 7 Reuters Analysts have cut their bullish nearterm forecasts for the Canadian dollar as China39;s economy weakens and the gap between U.S. and Canadian bond yields grows, but still expect the currency to be stronger in a year, a Reuters poll showed.

The median forecast of nearly 40 foreign exchange analysts was for the loonie to strengthen 1.9 to 1.34 per U.S. dollar, or 74.63 U.S. cents, in three months, compared to 1.32 in last month39;s forecast.

It was then expected to advance to 1.29 in a year, matching August39;s forecast and a gain of 5.8.

The loonie has lost a few feathers in recent weeks, said Stefane Marion, chief economist and strategist at National Bank of Canada.

Widening interest rate differentials with the U.S. and weaker commodity prices due to a slowing Chinese economy are keeping the CAD in check.

China39;s economic growth is slowing as policymakers try to fix a property market downturn. Canada is a major producer of commodities, so the loonie tends to be sensitive to the global growth outlook.

The currency has weakened about 4 from its July peak, while the Canadian 2year yield has fallen in recent weeks further below its U.S. equivalent.

On Wednesday, the gap was 36.5 basis points in favor of the U.S. note, its biggest since May 3, as the Bank of Canada left its key interest rate on hold at a 22year high of 5, noting the economy had entered a period of weaker growth.

Canada39;s economy unexpectedly contracted in the second…